ED chargesheets WinZO for using bots and AI to defraud players of Rs 734 crore
The Enforcement Directorate charged WinZO and its directors with embedding bots and AI in their real-money gaming platform to manipulate games and defraud players. The company reportedly lured users with small wins against easy bots, then systematically deployed harder bots when users increased bet amounts, resulting in losses of approximately Rs 734 crore.
What happened
The Enforcement Directorate (ED) filed a prosecution complaint on January 23, 2026 before a special court alleging that WinZO Pvt. Ltd. and its directors embedded bots and AI algorithms to manipulate games on its real-money gaming platform.
Until December 2023, the platform used bots and algorithm profiles directly embedded in game code. From May 2024 to August 2025, WinZO changed tactics to simulate historical match-play data of dormant players against real users without their knowledge or consent, using misleading terms like 'engagement play' (EP) and 'past performance of player' (PPP) to conceal the practice.
The ED alleged that users were initially lured with small bonuses and allowed to win against easy bots to build false trust, then systematically faced hard bots when betting larger amounts, resulting in substantial losses.
Reported impact
Genuine users lost approximately Rs 734 crore on the platform due to manipulation by bot profiles and AI systems.
WinZO claimed to offer over 100 games to about 25 crore users largely from tier-3 and tier-4 cities, while publicly assuring users that the platform was free from bots, transparent and secure.
Index analysis
The use of bots and AI to manipulate game outcomes constitutes a breach of the trust represented to users that the platform operated fairly and transparently without automated deception.
Governance controls
The Indian government banned real-money gaming apps in August 2025. The Union government's action followed reports of such fraudulent practices in the sector.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.